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  "documentTitle": "Construction Partners, Inc. (ROAD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-01-23 00:00:00",
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      "kind": "callout",
      "text": "LSP's Revenue Recognition Policy: FASB ASC 606, Revenue from Contracts with Customers, (\"ASC 606\") requires entities to assess the products or services promised in contracts with customers at contract inception to determine the appropriate unit at which to record revenue...",
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      "text": "Financial Statements: Concentration of Credit Risk: \"One customer represented 13% of the Company's total revenues at December 31, 2023. No customer represented more than 10% of total contract receivables.\"",
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      "kind": "callout",
      "text": "If ROAD / LSP misevaluated who is the actual customer in its business dealings, there is the potential that revenue has been inaccurately recorded.",
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      "text": "Revenue Mix pie chart showing 47% Private, 40% TxDOT, 13% Municipalities.",
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      "kind": "metric",
      "text": "revenue concentration: 14.8%",
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      "text": "ROAD makes conflicting revenue claims related to Texas DOT in 2023 (14.8% or 13% of sales). In its updated financial statements through September 30, 2024 and including ACE Aggregates, it revealed that one customer is now 25%. We assume it continues to be Texas DOT. Also, its revenue recognition says it is based on customer contracts. However, our FOIA on the next slide clearly shows no direct contracts between Texas DOT and LSP (including ACE) in 2023. If ROAD / LSP misevaluated who is the actual customer in its business dealings, there is the potential that revenue has been inaccurately recorded.",
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      "text": "One customer represented 13% of the Company's total revenues at December 31, 2023. No customer represented more than 10% of total contract receivables. — Financial Statements: Concentration of Credit Risk",
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      "kind": "source-note",
      "text": "Source: Freedom of Information Act Request, Texas DOT, LSP Financials, Update Financials as of 9/30/24, Lender Presentation",
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      "kind": "table",
      "text": "LSP - Long-Standing Customer Relationships table showing top 10 paving customers, end market, % FY 23A Revenue, and customer tenure.",
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      "kind": "title",
      "text": "Potentially Severely Problematic Revenue Reporting At Lone Star Paving",
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      "kind": "title",
      "text": "ROAD Shows Texas DOT As A Top Customer: 14.8% or 13.0% of Revenues?",
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